Nearly two-thirds of acquisitions by established FMCG companies in the past five fiscal years have been in the D2C space, as they gained traction with differentiated products and marketing campaigns aided by internet and smartphone penetration, a report by Crisil stated.

These acquisitions provide FMCG companies with access to personalised consumer insights, and so far the modest size of these acquisitions has not impacted the credit profile of acquirers. A study of 82 FMCG companies in the Crisil Ratings-rated portfolio and 58 D2C companies indicates as much, the ratings company stated.

Also, D2C brands have logged about 40 per cent compound annual growth rate (CAGR) between fiscals 2021 and 2024, albeit on a low base. In comparison, FMCG players clocked a more moderate about 9 per cent

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